That is not true Arthur. FINRA can tell by a process called Blue Sheeting where a share transaction originated. This is done daily as all brokers must submit a list of all daily transactions to FINRA. This list includes all trades that occurred, including those that were sold short and not covered.
this is one of the double checks that FINRA has in place to prevent security manipulation by groups and individuals as well to verify the brokers position in a security.
Any question on the truth behind this, pick up the phone and call your brokerage security department. They will explain the process to you.
The transfer agent would be the one to report new dilutive shares hitting the market in their daily report. More then likely this is the cause of the DTC chill.....
News 
Market Data 
Discover 
